This is because the business plan isn’t in enough detail. Filling all the areas of a business plan is key before you more forward with your business. The areas to pay the most attention to must be the marketing and the finance sections. The key to any business venture is that you have given enough thought to the marketing plan; you need to know where you are going with the product, understand the targeted audience and the price of the item. These details are just a few that you should consider before finalising any product.
If you have bad debts, this could affect your eligibility for any start-up funds. Even if you have traded for a while and you are introducing a new product, this might be a new line. However, you will still need to ensure that the consumers are going to want the item and any form of advertising is going to put a financial strain on the business unless you account for this in your business plan.
A product can succeed if you have spent the time doing the market research properly and preparing the item for the launch. It is still possible to apply for a merchant cash advance even with bad credit, for the launch of your new business venture.
The cash advance works differently from a traditional loan; a cash advance from your merchant provider base their acceptance on the sales via debit and credit card and your businesses annual turnover. Whilst this demonstrates the business current sales performance it doesn’t penalise any slow days in sales, because the payments to the merchant account are paid daily as a percentage of the sales made, somewhere in the region between 10 – 20% of the days takings.
Therefore, if you are looking to start any business venture ensure you have thought through the concept in detail, before you ask for any financial backing.
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